The fate of the Czech government and its fiscal-consolidation efforts come back into play from Tuesday, as parliament starts its new session and is due to vote on several important pieces of legislation–namely pension reform, tax increases and a confidence vote in the cabinet.

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Lawmakers will decide whether or not to support the creation of a privately managed second pillar of the state-funded pension system, while on Wednesday or Friday they are to decide on increases to sales and income taxes in a vote that is tied to a confidence vote in the government.

The parliament has flexibility in the running order of events and the timing of various votes can change unexpectedly.

Also in Prague, fresh economic indicators showed that the country’s industrial output shrank 7.1% compared with the year-earlier in September after contracting 3.1% in August, as both domestic and European demand for locally produced goods wanes.

In Budapest, Hungary’s largest drug maker Richter’s profits fell 57% on the year in the third quarter as Europe’s economic slowdown weighs.

OTHER NEWS

POLAND/RUSSIA: Russian gas giant OAO Gazprom has agreed to amend the gas price formula in its contract with Poland’sPGNiG SA, the latest in a string of concessions to clients in the lucrative European market that have been pushing for lower prices.

“The priorities of the government may change and I’ll respect the views of the cabinet, but I can’t accept a higher deficit,” Miroslav Kalousek said after a press briefing.

SLOVAKIA: The Slovak Debt and Liquidity Management Agency will auction a four-year government bond at its next auction Nov. 12, it said Monday.

HUNGARY: The National Bank of Hungary could ease monetary policy further if a recent improvement in risk perception and strengthening in the forint persist, members of the bank’s Monetary Policy Council said Monday.

ROMANIA: Romanian Prime Minister Victor Ponta said Monday that his country would miss a 2015 target for joining the euro zone, but remained committed to adopting Europe’s single currency once the conditions were appropriate.

About Emerging Europe

Emerging Europe Real Time provides sharp analysis and insight into what’s making news in Central and Eastern Europe. Drawing on the expertise of our reporters in the Czech Republic, Hungary, Poland, Russia and Turkey, the site provides an inside track on economics, politics and business in this emerging part of the European continent.